45 Listed Companies Completed Implementation of Employee Stock Ownership Plans in the Year

Securities Daily Reporter Gui Xiaosun

Data from Wind shows that as of March 17, this year, a total of 45 listed companies have announced the completion of employee stock ownership plans, compared to only 19 companies during the same period last year.

“Intensified talent competition is the core driving force. In new energy, technological innovation, and other fields, employee stock ownership plans have become key tools for companies to retain core personnel and build a strong talent moat,” said Liu Youhua, Research Director at Qianhai PaiPaiWang Fund Sales Co., Ltd., in an interview with Securities Daily. “Economic cycles and corporate transformation needs are important catalysts. During the economic recovery phase, companies need internal teams to stay stable and deeply aligned with long-term interests. At the same time, facing strategic transformation across multiple industries, employee stock ownership plans with broad coverage and clear long-term incentive effects better meet the practical needs of pushing teams to fully commit to new tracks and achieve strategic goals. The surge in companies implementing employee stock ownership plans in 2026 is the result of multiple factors working together.”

By comparing the announcement dates of the plans, shareholder meeting notices, and completion dates for the 45 companies, some companies took just over a month from plan announcement to implementation, while others took several years from plan disclosure to execution.

Among the 45 companies implementing employee stock ownership plans this year, all sources of shares are indicated as “purchases on the secondary market (including block trades).” Liu Youhua told reporters that in 2025, listed companies conducted intensive share buybacks, accumulating sufficient stock inventory, which provided low-cost, non-dilutive share sources for implementing employee stock ownership plans.

Reviewing previous announcements from listed companies shows that most companies, when launching share repurchase plans, also mentioned that future repurchased shares would be used for employee stock ownership plans or equity incentives. For example, Qingniao Fire Protection Co., Ltd. announced that, based on confidence in the company’s future development and recognition of its long-term value, to boost investor confidence and protect the interests of shareholders, the company plans to use its own funds and raised funds to repurchase shares through centralized bidding transactions. At an appropriate future time, these repurchased shares will be used for employee stock ownership plans or equity incentives to further improve corporate governance, establish a long-term incentive and restraint mechanism, fully motivate employees, and effectively align shareholder interests, company interests, and the personal interests of core teams.

“Compared to traditional equity incentives, employee stock ownership plans cover a broader scope. They can extend from senior management to core grassroots staff in R&D, operations, and other departments, achieving benefits across the entire business chain. Additionally, the benefits are more deeply aligned, with more proactive incentives, and more flexible lock-up periods and performance conditions. Moreover, employees are required to make active contributions, and this participation with real money can foster a stronger sense of identity and ownership, further stimulating team initiative,” Liu Youhua explained.

Data shows that the number of participants in these 45 companies’ employee stock ownership plans ranges from hundreds to tens of thousands.

Yuan Huaming, General Manager of Guangdong Huahui Chuangfu Investment Management Co., Ltd., told Securities Daily that employee stock ownership plans tie employees’ long-term development to that of the company, helping to build corporate culture and enhance cohesion. Since employees need to contribute their own funds, the financial pressure on the company is minimal. Moreover, employee stock ownership plans have low thresholds and more equitable distribution. “Employee stock ownership opportunities are available to all or most employees; in contrast, equity incentives are often only given to senior management and a few key employees. If the company performs well, ordinary employees participating in the plan can share in the company’s growth dividends.”